The Rajya Sabha is debating the Mines and Minerals (Development & Regulation) Amendment Bill, 2025, after its passage in the Lok Sabha on August 12, aiming to accelerate the mining of critical minerals vital for India’s energy and manufacturing sectors, while facing opposition from southern states over environmental and social concerns. The bill’s outcome could reshape India’s mineral policy at a time of global resource competition.

Key Provisions and Immediate Impact

The Mines and Minerals (Development & Regulation) Amendment Bill, 2025 proposes sweeping changes to India’s mineral sector, focusing on:

Fast-tracking exploration and mining of critical minerals, such as lithium and rare earths, essential for electric vehicles, electronics, and defense industries.
Allowing mining lease holders to mine critical minerals, expanding beyond traditional minerals.
Establishing a minerals and metals exchange to facilitate transparent trading, maintain a comprehensive data bank, and prevent market manipulation.
Expanding the National Mineral Exploration Trust (NMET) to support broader exploration activities.

The bill is designed to address the global scramble for rare earth minerals, especially as China, which supplies over 90% of rare-earth magnets, has imposed export restrictions, threatening global supply chains for electronics and automotive industries.

Table: Major Amendments Proposed

Provision	Previous Policy	Proposed Change (2025 Bill)
Mining of critical minerals	Restricted to select entities	Open to all mining lease holders
Private sector participation	Limited	Expanded, including deep-seated minerals
Minerals exchange	Not present	To be established
NMET scope	Limited	Broadened

Political and Regional Reactions

The bill, introduced by Coal and Mines Minister G Kishan Reddy, has been promoted as a step to ensure India’s self-reliance in key minerals and to support the manufacturing sector. However, it has faced staunch opposition from southern states, notably Kerala, due to fears about the environmental and social impact of expanded offshore mining. Critics argue that the livelihoods of fishing communities and the health of marine ecosystems could be at risk if the bill is enacted without adequate safeguards.

“Every sector is dependent on critical minerals, and this bill will help secure India’s future in advanced technologies,” stated Minister Reddy during the Lok Sabha debate.

Economic and Strategic Context

The bill arrives at a time when global demand for critical minerals is surging, driven by the transition to renewable energy and advanced manufacturing. India’s move to liberalize its mining sector and create a regulated exchange is seen as an effort to reduce dependence on imports and strengthen its position in the global supply chain.

The bill must now pass the Rajya Sabha before being sent to President Droupadi Murmu for final assent. Its passage would mark a significant shift in India’s mineral policy, potentially unlocking new investments and technological advancements.

Frequently Asked Questions

What are “critical minerals” and why are they important for India?
Critical minerals like lithium and rare earths are essential for batteries, electronics, and defense, making them vital for India’s economic and strategic interests.

How will the minerals exchange work in practice?
The proposed exchange will enable transparent trading of minerals, maintain transaction records, and enforce rules to prevent insider trading and manipulation.

What safeguards are proposed for environmental protection?
The bill’s text does not specify new safeguards, raising concerns among environmental groups and affected states about potential ecological impacts.

How does this bill affect India’s dependence on Chinese mineral imports?
By expanding domestic mining, India aims to reduce reliance on Chinese supplies, especially as China tightens export controls on rare earths.

What is the next step after Rajya Sabha’s deliberation?
If passed, the bill will go to the President for assent before becoming law.

Key Takeaways

The Mines and Minerals Amendment Bill, 2025, now under Rajya Sabha scrutiny, could transform India’s mineral sector by boosting critical mineral mining and private participation, but faces significant environmental and regional pushback. Stakeholders should closely monitor the bill’s progress and engage in dialogue to balance economic growth with environmental stewardship.